Textbook Notes (369,133)
United States (206,214)
Economics (193)
ECON 351 (21)
Chapter 6

Chapter 6_Stock Market, Information, Financial Market Efficiency.docx

2 Pages
99 Views

Department
Economics
Course Code
ECON 351
Professor
Frank Sorokach

This preview shows 80% of the first page. Sign up to view the full 2 pages of the document.
Description
Chapter 6: Stock Market, Information, Financial Market Efficiency  Sole Proprietors – sole owners of a firm and people who own a firm with partners have unlimited liability for the firm’s debts. The owners of these firms run the risk that if the firm goes bankrupt; anyone the firm owes money to can sue the owners for their personal assets.  Corporation – a legal form of business that provides owners with protection from losing more than their investment if the business fails  Limited Liability – a legal provision that shields owners of a corporation from losing more than they have invested in the firm  Stock Market Index – an average of stock prices that is used to measure the overall performance of the stock market. - 5,100 publicly traded U.S. firms represent 10% of firms listed on stock exchanges worldwide 1. Dow Jones IndustrialAverage – average of the prices of the stocks of just 30 large firms which including [Coca-Cola, Microsoft, Walt Disney] 2. S&P 500 – includes the 30 stocks that are in the Dow as well as stocks issued by 470 other large companies covering about 75% of theAmerican equity market by capitalization. [Apple, AT&T, Dell,American Express] 3. NASDAQ – includes 2750 stocks that are traded over the counter market. It includes stocks issued by many smaller technology firms that are not included in other index. [Tesla Motors, Google, Facebook]  Does the performance of stock market matter to the economy? - Fluctuation in stock prices can affect the economy by influencing the spending of households and firms. • Rising stock prices => increase spending => increase in production and employment. •
More Less
Unlock Document

Only 80% of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit